Who is responsible for Kitchen Solvers' attorneys' fees and costs in a franchisee's bankruptcy proceeding?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the prevailing party in any legal proceeding is entitled to recover reasonable attorneys' fees, costs, and interest. This applies to any legal proceeding before a court, arbitrator, or other tribunal.

This means that if Kitchen Solvers were to initiate a legal proceeding against a franchisee due to a breach of contract, including bankruptcy, and Kitchen Solvers prevails, the franchisee would be responsible for Kitchen Solvers' legal fees and costs. Conversely, if the franchisee prevails, Kitchen Solvers would be responsible for the franchisee's legal fees and costs.

This arrangement is fairly standard in franchise agreements, as it aims to protect both parties and discourage frivolous lawsuits. However, it's important for a prospective Kitchen Solvers franchisee to understand that they could be responsible for significant legal expenses if they are involved in a legal dispute with Kitchen Solvers and do not prevail.